Synopsis

Foreign investment has been an important factor in Pakistan’s telecom sector. Pakistan’s telecom market had been struggling for a long time with the transition from a regulated state-owned monopoly to a deregulated competitive structure. As well as capital input from the government, the World Bank and the Asian Development Bank (ADB) have been active in providing capital for country’s telecom sector.

In 2015 there was setback in the mobile growth with the government’s re-verification program, which saw a temporary decline and stall in mobile subscriber growth.

The rapid roll out of the 3G and 4G networks has strong uptake of mobile broadband during 2016 and 2017.

Despite the government’s promotion of internet and expansion of universal internet access to cities, towns and villages throughout the nation over the past decade, internet penetration has remained relatively low in global terms.

The fixed line market in Pakistan remains underdeveloped due to the dominance of the mobile segment. Further, the number of fixed telephone lines is slowly declining as the mobile segment continues to expand. Overall penetration dropped from 2.6% in 2014 to 1.9% in 2015 and 1.5% in 2017. The market is predicted to decline further over the next five years to 2022 as the mobile segment continues to grow for both voice and data/broadband usage.

Key developments:

Rapid roll out of the 3G and 4G networks has seen strong uptake of mobile broadband.

The fixed line market remains underdeveloped due to the dominance of the mobile segment.

The fixed line market is predicted to decline further over the next five years to 2022.

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